US markets post significant slide on Ukraine, China worries

Poor data out of China and worries about the future of Ukraine have sent global markets back into retreat.

The Dow Jones Industrial Average lost 1.1 per cent to 16,109.

The S&P 500 finished down 1.2 per cent to 1,846.

Tensions over Ukraine ramped up overnight ahead of a scheduled vote on Crimea this weekend, weighing on markets.

Thomson Reuters senior currency analyst John Noonan says more bad news out of China added to the markets woes.

"China fears continued to intensify after the weaker than expected China data and hints from China Premier Li that China would tolerate a slowing economy and would allow further debt defaults," he said.

The National Bureau of Statistics shows retail sales rose 11.8 per cent and industrial production rose 8.6 per cent in the first two months of the year, but both figures were below market expectations.

The news erased gains made on Wall Street earlier on the back of data showing a rise in retail sales for the first time in two months in February, and a better than a expected jobless claims report.

Australian stocks were set for an bad start to trade, the ASX SPI 200 was down 1.1 per cent at 5,355.

The Australian dollar was slightly higher than this time yesterday, buying 90.31 US cents around 8:20am (AEDT) - the currency received a boost yesterday from better than expected Australian employment data.

On commodity markets, gold continued to rise to $US1,373 an ounce.

The spot iron ore price also continues to recover despite that poor data out of China - it climbed back to $US111.50 a tonne.

US oil prices were steady overnight: West Texas crude was worth $US98.52 a barrel; and Singapore's Tapis crude was down at $US113.15.